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[12Invest] 12 Stock Talk - PADINI (7052) Padini Holdings Berhad – Stock Analysis ( PART 2 )

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                     ** Part 1 --- > https://klse.i3investor.com/blogs/12stocktalk/216385.jsp **

Here is the long awaited “Financial Statements” for Padini Part 2. Time for
homework guys and gals! Towards the end we will also be calculating the PEG
ratio and give our “Honest Opinion” about this stock.
Income Statement (Profitability) 

Revenue is still YoY for their 2018 and also the trailing 4Q which has hit as
high as 1.74bil for the T4Q but a lower profit before tax compared to the 2018
result, however if we compare the 2018 and 2017 both are still YoY growth for
revenue and PBT with a 10 years CAGR of 14.99% for Revenue and 15.09% for
PBT.
Another thing I like about this is their Net profit which is one of the key
indicators as to whether a company is really growing their cash or not. Their
Net profit for the past 10 years CAGR is 15.28% and has recorded a good value
of 178mil Net profit in the year of 2018. EPS growth is also growing at a good
pace for the past 5 years, 0.27 cents a share to be exact for the year of 2018.
A solid Income statement if you ask me. Their Earnings per share has also 
increased YoY in 2017 23.92 cents per share to now 2018 is 27.08 cents per
share, an increase of 13.21%!
  • 2017 -- 2018
     
  • Revenue -- 6.88%
     
  • Gross Profit -- 11.14%
     
  • Net Profit -- 13.20%
     
  • EPS -- 13.21%
     
Balance Sheet (Assets, Liabilities and Equity) 

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Padini’s assets has also been growing YoY, from 881.2mil to 924mil which isn’t
a large growth but its quite a decent one judging by how much they are paying
out in dividend, they are using their cash also to grow their assets. On the
other hand in terms of their liabilities it is decreasing and when you see their
assets growing but their liabilities is getting lesser you know that the
management is moving the company in the right direction. 

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Their liabilities has dropped quite substantially from 329.1mil to 261.4mil
which the main contributor for this huge decrease is their repayment on their
borrowings from 75.9mil to only 33.4mil for the year 2018 which is really
outstanding.
  • 2017 -- 2018
     
  • Total Assets -- 4.84%
     
  • Total Liabilities -- 17.72
     
Cashflow Statement (Cash Management) 
Now lets move on to the cashflow statement which is equally as important as
all the other financial statements, this is where we will see how did they use
their money to grow the company.
Their cash generated from operations sadly was decreased but why? Lets
further breakdown their cash from operating activities. We can see that the
profit before tax is still higher in 2018 compared to 2017 by 12.43% which is a
good sign but what really hit them is the Reversal of inventories written off and
written down which is about 23.2mil in 2018 but they didn’t have this in the
year of 2017.

Another disturbing thing which is the increase of inventory and decrease in
trade and other receivables, although they are making YoY sales but they have
higher inventories? Probably their management thought that 2018 will be a
good year? Or it could be that they are buying more of the “winter” by that I
mean stock market crash , as they predict that middle class people would
buy cheaper clothes when they don’t have money? All these has led to their
take home cash to be lesser but nonetheless they are still making good money
as their cash and cash equivalents at the end of FY2018 increased by 34.4mil+
compared with FY2017.
  • 2017 -- 2018
     
  • Cash from operating activities -- 25.79
     
  • Cash and cash equivalents at end of FY2018 -- 8.27%
     
      PEG ratio
  • Current Price / Earnings = 14.28
     
  • Growth (5 years CAGR of Net Income) = 18.26% (stated in Part 1)
     
  • PEG = 14.28 / 18.26 = 0.78
All in all the company is still doing decently good and they are consistently
growing their revenue and profits YoY and their management team is doing a
good job at managing the company’s direction moving forward. Their stock
price drop quite substantially but their business is still doing great so is it a
good time to invest in it now? It is up to you guys to decide. I have provided
you guys with all the information especially the PEG ratio so do you guys think
its cheap?
enlightened———— Check us out ————enlightened
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#PADINI

#ISITCHEAP?

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